Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary's authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time.
I have a big SKF trade on right now. I am long, for example, Apr 09 130 calls and short the 180s.
However, because of the potential counterparty risk in SKF, I also own some SKF 65 puts; enough to make me whole if SKF were to fail.
Just talked to my metals broker. They have no silver in inventory right now. May be getting some on Monday. Their price is 3 above spot if they do. But they were supposed to get some this Monday and didn't.
They do have gold; there is plenty of depth on gold. They are asking ~912/oz for Maples and ~916/oz for Eagles.
The metal selloff seems mainly electronic, just like the oil & gas selloff. There is not an abundance of the physical.
This is via Calculated Risk:
"When you think about all those mortgage guys driving around in their Lamborghinis and spending money hand over fist, driving up the local economy – what everybody's got to understand is that the weirdness was when those guys were making that kind of money, not what's happening now," said economist Chris Thornberg of Beacon Economics.Also, I just added Capital Observer to my blogroll.
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